Question: can you work our step for step what this looks like? 1120 Reward-to-Risk Ratios. In the previous problem, what would the risk-free rate have to

can you work our step for step what this looks like?

1120 Reward-to-Risk Ratios. In the previous problem, what would the risk-free rate have to be for the two stocks to be correctly priced relative to each other? (.116-R)/1.20 = (.103 R)/.85 R=.0714, or 7.14% %3D

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